Core Viewpoint - Berkshire Hathaway, led by Warren Buffett, has made significant changes to its stock portfolio in the third quarter, including a new investment in Alphabet and a reduction in its holdings of Apple [3][12]. Group 1: Portfolio Changes - Berkshire Hathaway initiated a position in Alphabet, purchasing approximately 17.8 million shares valued at about $4.34 billion, representing 1.62% of its total portfolio [7][10]. - The total market value of Berkshire's stock holdings reached $267 billion, with the top ten holdings accounting for 86.69% of the total portfolio [5][6]. - In the third quarter, Berkshire sold off about 41.8 million shares of Apple, reducing its stake by 14.92%, while still holding over 238 million shares valued at approximately $60.66 billion, making Apple its largest holding [12][14]. Group 2: Increased Holdings - Berkshire increased its stake in Chubb Limited (formerly known as ACE Limited) by approximately 4.3 million shares, raising its market value by $1.21 billion, with the holding percentage increasing from 3.04% to 3.31% [9][10]. - Additional increases were noted in Sirius XM, Domino's Pizza, and Lennar Corporation, reflecting a strategic focus on these companies [9]. Group 3: Reduced Holdings - The company further reduced its holdings in Bank of America by approximately 37.2 million shares, decreasing its stake from 11.12% to 10.96% [12][14]. - Berkshire completely exited its position in D.R. Horton, selling all 1.485 million shares, which is significant given the company's role as a barometer for the U.S. housing market [14][15].

Core Viewpoint - Berkshire Hathaway, led by Warren Buffett, has made significant changes to its investment portfolio in the third quarter, including a new position in Alphabet and a reduction in its holdings of Apple and other stocks [2][11]. Summary by Sections New Purchases - Berkshire initiated a new position in Alphabet, purchasing approximately 17.85 million shares, valued at about $4.34 billion, which represents 1.62% of its total portfolio and ranks as the tenth largest holding [6][9]. Increased Holdings - The company increased its stake in Chubb Limited (insurance) by about 4.3 million shares, raising its market value by $1.21 billion, with the holding percentage increasing from 3.04% to 3.31% [8]. Reduced Holdings - Berkshire sold approximately 41.79 million shares of Apple, a reduction of over 14.92%, leaving it with over 238.21 million shares valued at approximately $60.66 billion, making Apple still the largest holding [11][12]. - The company also reduced its holdings in Bank of America by about 37.22 million shares, decreasing its stake from 11.12% to 10.96% [14]. - Berkshire completely exited its position in D.R. Horton, selling all 1.4854 million shares, which is significant as the company is considered a barometer for the U.S. housing market [11][13]. Overall Portfolio Changes - As of the end of the third quarter, Berkshire held a total of 41 stocks in the U.S. market, with a total market value of $267 billion, an increase from $258 billion in the previous quarter. The top ten holdings accounted for 86.69% of the total portfolio [4][5].

RT unusual_whales (@unusual_whales)Hardship withdrawals from 401(k)s are at the highest point they have recorded, per Bank of America, $BAC. https://t.co/UtqPDklczB ...

Core Viewpoint - Bank of America reported strong Q3 2025 earnings, exceeding expectations, driven by solid trading and investment banking performance, but faces questions about the sustainability of this positive trend leading up to the next earnings release [1][2]. Financial Performance - Q3 2025 earnings per share were $1.06, surpassing the Zacks Consensus Estimate of 94 cents and up from 81 cents in the prior-year quarter [2]. - Total revenues reached $28.09 billion, exceeding the Zacks Consensus Estimate of $27.28 billion and reflecting a 10.8% year-over-year increase [7]. - Net interest income (NII) grew 9% year-over-year to $15.39 billion, slightly above the estimate of $15.29 billion [7]. - Non-interest income increased 13% year-over-year to $12.86 billion, driven by higher fees and commissions, surpassing the projected $11.66 billion [8]. - Net income applicable to common shareholders rose 26% year-over-year to $8.04 billion, exceeding the estimate of $6.85 billion [6]. Trading and Investment Banking Performance - Trading revenues grew 8.3% year-over-year to $5.35 billion, marking the 14th consecutive quarter of improvement [3]. - Investment banking fees in the Global Banking division increased 47.5% year-over-year to $1.16 billion, with equity and debt underwriting income rising 47% and 42.2%, respectively [4]. Expense and Efficiency Metrics - Non-interest expenses rose 5.2% year-over-year to $17.34 billion, attributed to increases in nearly all cost components [8]. - The efficiency ratio improved to 61.39%, down from 64.64% in the prior-year quarter, indicating enhanced profitability [9]. Credit Quality and Capital Position - Provision for credit losses decreased 16% year-over-year to $1.30 billion, better than the estimated $1.58 billion [10]. - Net charge-offs declined 10.9% year-over-year to $1.37 billion, with non-performing loans as a percentage of total loans dropping to 0.46% from 0.53% [11]. - Book value per share increased to $37.95 from $35.37 a year ago, while tangible book value per share rose to $28.39 from $26.25 [12]. Share Repurchase and Future Guidance - The company repurchased shares worth $5.3 billion during the reported quarter [13]. - Management expects NII for Q4 2025 to be between $15.6 billion and $15.7 billion, indicating an 8% year-over-year growth [14]. Medium-Term Targets - The company anticipates a compound annual growth rate (CAGR) of 5-7% for NII, with loans and deposits expected to grow by 5% or more and 4%, respectively [16]. - The efficiency ratio is projected to improve to the low-60% range over time [15].

Group 1 - Goldman Sachs suggests that the Federal Reserve may soon announce "reserve management purchases," injecting liquidity into the market by buying short-term government bonds, which the market interprets as a signal for a new round of quantitative easing (QE) [1][3] - JPMorgan's CEO emphasizes that the current AI investment wave is not a market bubble but the beginning of a significant transformation in corporate operations, indicating that the market's expectations for AI's value exceed its current realizations, suggesting substantial potential [1] - Citi notes an improvement in credit outlook for peripheral Eurozone countries, with Italy, Spain, Portugal, Greece, and Ireland likely to receive credit rating upgrades by 2026 due to fiscal consolidation and resilient economic growth [1] Group 2 - Guggenheim's Chief Investment Officer indicates that the economic slowdown reflected in the Beige Book, along with pressures on low-income groups and small businesses, suggests a "dual-speed economy," leading the Fed to likely cut rates again in December [2] - Blackhawk Analytics reports that initial jobless claims in the U.S. slightly decreased to 227,500, indicating a stable labor market, which may support the Fed's decision to hold rates steady in December [2] - Morgan Stanley's economists assert that the current level of initial jobless claims is consistent with recent years, showing no signs of an escalating layoff trend, and that the government shutdown may have distorted data reporting [2]

Core Viewpoint - Banks are selling properties at discounted prices not due to urgency but as a strategy to improve loan recovery and efficiency in capital turnover [1][2][3] Group 1: Bank's Strategy - Banks are effectively selling loans secured by properties rather than the properties themselves, allowing them to recover more funds [1][5] - By selling properties at around 80% of their market value, banks can find new borrowers, thus securing additional profits beyond the principal amount [5][8] - This approach allows banks to bypass lengthy court auction processes, enhancing their capital turnover efficiency [2][3] Group 2: Market Impact - The influx of discounted properties may initially seem detrimental to property prices, but it could facilitate a quicker stabilization of the real estate market in the long run [8] - Accelerating the disposal of non-performing assets can improve banks' financial health and contribute to a more efficient market recovery [8]

Core Insights - Berkshire Hathaway sold $12 billion worth of stocks in the third quarter, continuing a trend of net selling over the years, with Apple and Bank of America being the primary targets for reduction [1][4] - The company also purchased $6.4 billion in stocks, primarily in the commercial and industrial sectors, indicating a strategic shift in investment focus [1][3] Group 1: Stock Sales and Purchases - The third quarter saw Berkshire sell $12.4 billion in stocks and buy $6.4 billion, resulting in a net sale of $6 billion [1][4] - The estimated reduction in Apple shares was about 35 million, while Bank of America shares were reduced by 50 to 100 million [1][2] - Berkshire's stock in Apple has decreased from approximately 900 million shares at the end of 2023 to 280 million shares [1][4] Group 2: Investment Strategy - The significant capital gains of approximately $10 billion were primarily linked to the long-term holdings in Apple and Bank of America, which have a lower cost basis [2] - The cost basis for Apple shares is estimated at around $35 per share, aligning with the reduction in the consumer goods category by about $1.2 billion [2] - New investments in the industrial sector indicate a strategic pivot, with a focus on companies like UnitedHealth Group, Lennar, and Nucor [3] Group 3: Long-term Trends - The trend of net selling has persisted for several years, with the third quarter's figures reinforcing this pattern [4] - Despite the significant reductions, Berkshire still holds substantial positions in both Apple and Bank of America, with approximately 245 million shares of Apple remaining and over 500 million shares of Bank of America [4]

Market Overview - The US stock market experienced a significant decline, with the Dow Jones dropping nearly 800 points, marking a 1.65% decrease, while the Nasdaq fell by 2.29% [2][3] - Major companies such as Disney and Goldman Sachs led the decline, with Disney's stock dropping over 7% and Goldman Sachs nearly 4% [1][2] Economic Indicators - The market anticipates the release of the October employment report, which will not include unemployment rate data, leading to a drop in the probability of a Federal Reserve rate cut in December from 62.9% to slightly above 49% [4][5] - The government shutdown, which lasted 43 days, has been officially ended, with President Trump signing a temporary funding bill, but the economic impact is expected to be significant, with a projected GDP decline of 1.5% for Q4 [4][5] Company Performance - Disney reported mixed results for Q4, with revenues of $22.46 billion, slightly below market expectations of $22.75 billion, despite a year-over-year revenue decline [9] - Disney's direct-to-consumer segment saw an 8% revenue increase, reaching $6.25 billion, and exceeded subscriber expectations for Disney+ and Hulu [9] Financial Sector - Major banks such as JPMorgan, Goldman Sachs, and Citigroup saw declines in their stock prices, with JPMorgan down over 3% and Goldman Sachs nearly 4% [5][6] - Financial institutions are urging the Federal Reserve to take action to address liquidity issues in the short-term financing market [5] Energy Sector - The International Energy Agency (IEA) has raised its forecast for global oil supply surplus for the sixth consecutive month, predicting a surplus of approximately 4 million barrels per day by 2026 [10][11] - Oil prices showed a slight rebound after a significant drop, with WTI crude futures rising about 0.3% [10]

Market Overview - The US stock market experienced a significant decline, with the Dow Jones dropping nearly 800 points, marking a 1.65% decrease, closing at 47,457.22 points. The Nasdaq fell by 536.10 points, a 2.29% drop, ending at 22,870.36 points, while the S&P 500 decreased by 113.43 points, or 1.66%, to close at 6,737.49 points [4]. Federal Reserve and Economic Impact - The probability of a Federal Reserve interest rate cut in December has sharply decreased to slightly above 49%, down from 62.9% the previous day, indicating a significant market shift in expectations [6]. - The government shutdown, which lasted 43 days, has been officially ended, with President Trump signing a temporary funding bill. The shutdown reportedly cost the economy approximately $1.5 trillion, and the full impact will take weeks or months to assess [6][8]. Corporate Performance - Disney's stock fell over 7% following mixed results in its fourth-quarter earnings report. While profits exceeded expectations, revenue fell short, coming in at $22.46 billion, slightly below the anticipated $22.75 billion [12][13]. - Disney's direct-to-consumer segment saw an 8% year-over-year revenue increase, reaching $6.25 billion, with subscriber numbers for Disney+ and Hulu surpassing expectations [14]. - The company anticipates double-digit growth in adjusted earnings per share for the new fiscal year and plans to increase its stock buyback program to $7 billion [15]. Banking Sector - Major banks, including JPMorgan, Goldman Sachs, and Citigroup, saw declines in their stock prices, with JPMorgan down over 3% and Goldman Sachs nearly 4% [9][8]. - Financial institutions have warned that the Federal Reserve may need to take measures to address liquidity issues in the short-term financing market, potentially including increasing loan supply or directly purchasing securities [8]. Technology Sector - Tesla's stock dropped over 6%, while other major tech stocks also experienced declines, including Nvidia down over 3%, Google and Amazon nearly 3%, and Microsoft down over 1% [9][10].

Bank of America asked a federal judge to throw out a proposed class-action lawsuit accusing the company of aiding in Jeffrey Epstein’s sex-trafficking scheme https://t.co/20OoRFq8xk ...